Blockchain and the Circular Economy: A Systematic Review of Traceability-Driven Sustainable Supply Chains
Main Article Content
Abstract
Blockchain is generally perceived as the technology that will enable circular supply chains because by knowing the contents of a product, its history, and its state, an immutable distributed ledger can provide that information. This is a review which questions the argument. It asks what the science really shows about traceability-based circularity, and it discovers that the heart of the field's thesis is an unstudied conflation: blockchain ensures that the content of a record cannot be altered after it is written, but not the content of a record when it is written. All the circularity claims that are carried by the ledger, are sourced by a physical-digital binding a scan, a sensor and attestation that the ledger cannot guarantee. The review constructs a protocol-driven assessment of the traceability–circularity literature, which is based on two analytical instruments: A four-layer traceability stack mapping the point at which cryptographic guarantees start and end; and A circularity evidence ladder that distinguishes between what is technically feasible and what is actually observed. The review is conducted in accordance with PRISMA 2020 reporting protocol, and includes a fully documented and reproducible search strategy in the four databases, registered inclusion criteria, a structured extraction form and quality appraisal. Under these five themes, together with the veracity gap cutting across, there are two main themes advanced: provenance and compliance and co-ordinating reverse logistics.The two main themes advanced are the first, provenance and compliance, and the second, co-ordinating reverse logistics, with the veracity gap between them and the other two themes, together with the veracity gap between the two, together advanced. The review calls for the veracity question to be no longer an academic one, but rather an urgent issue due to regulatory developments, especially the obligatory digital product passports. The number of screens and the PRISMA flow are reported on the running of given database queries.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
All papers should be submitted electronically. All submitted manuscripts must be original work that is not under submission at another journal or under consideration for publication in another form, such as a monograph or chapter of a book. Authors of submitted papers are obligated not to submit their paper for publication elsewhere until an editorial decision is rendered on their submission. Further, authors of accepted papers are prohibited from publishing the results in other publications that appear before the paper is published in the Journal unless they receive approval for doing so from the Editor-In-Chief.
IJMR open access articles are licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. This license lets the audience to give appropriate credit, provide a link to the license, and indicate if changes were made and if they remix, transform, or build upon the material, they must distribute contributions under the same license as the original.
How to Cite
References
Abreu, H., Pereira, V., & Barata, J. (2025). Blockchain-based digital product passport: Design principles and demonstration. International Journal of Production Research, 63(16), 5863–5882. https://doi.org/10.1080/00207543.2025.2464161
Alves, L., Sá, M., Cruz, E. F., Alves, T., Alves, M., Oliveira, J., Santos, M., & Rosado da Cruz, A. M. (2024). A traceability platform for monitoring environmental and social sustainability in the textile and clothing value chain: Towards a digital passport for textiles and clothing. Sustainability, 16(1), 82. https://doi.org/10.3390/su16010082
Böckel, A., Nuzum, A.-K., & Weissbrod, I. (2021). Blockchain for the circular economy: Analysis of the research-practice gap. Sustainable Production and Consumption, 25, 525–539. https://doi.org/10.1016/j.spc.2020.12.006
Böhmecke-Schwafert, M., Wehinger, M., & Teigland, R. (2022). Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation. Business Strategy and the Environment, 31(8), 3786–3801. https://doi.org/10.1002/bse.3032
Caldarelli, G. (2020). Understanding the blockchain oracle problem: A call for action. Information, 11(11), 509. https://doi.org/10.3390/info11110509
Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification and open issues. Telematics and Informatics, 36, 55–81. https://doi.org/10.1016/j.tele.2018.11.006
Centobelli, P., Cerchione, R., Del Vecchio, P., Oropallo, E., & Secundo, G. (2022). Blockchain technology for bridging trust, traceability and transparency in circular supply chain. Information & Management, 59(7), 103508. https://doi.org/10.1016/j.im.2021.103508
Ellahi, R. M., Wood, L. C., & Bekhit, A. E.-D. A. (2023). Blockchain-based frameworks for food traceability: A systematic review. Foods, 12(16), 3026. https://doi.org/10.3390/foods12163026
Esmaeilian, B., Sarkis, J., Lewis, K., & Behdad, S. (2020). Blockchain for the future of sustainable supply chain management in Industry 4.0. Resources, Conservation and Recycling, 163, 105064. https://doi.org/10.1016/j.resconrec.2020.105064
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
Kamble, S. S., Gunasekaran, A., & Sharma, R. (2020). Modeling the blockchain enabled traceability in agriculture supply chain. International Journal of Information Management, 52, 101967. https://doi.org/10.1016/j.ijinfomgt.2019.05.023
Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005
Kouhizadeh, M., & Sarkis, J. (2018). Blockchain practices, potentials, and perspectives in greening supply chains. Sustainability, 10(10), 3652. https://doi.org/10.3390/su10103652
Kouhizadeh, M., Saberi, S., & Sarkis, J. (2021). Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers. International Journal of Production Economics, 231, 107831. https://doi.org/10.1016/j.ijpe.2020.107831
Kouhizadeh, M., Zhu, Q., & Sarkis, J. (2020). Blockchain and the circular economy: Potential tensions and critical reflections from practice. Production Planning & Control, 31(11–12), 950–966. https://doi.org/10.1080/09537287.2019.1695925
Kouhizadeh, M., Zhu, Q., & Sarkis, J. (2023). Circular economy performance measurements and blockchain technology: An examination of relationships. The International Journal of Logistics Management, 34(3), 720–743. https://doi.org/10.1108/IJLM-04-2022-0145
Kristoffersen, E., Blomsma, F., Mikalef, P., & Li, J. (2020). The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies. Journal of Business Research, 120, 241–261. https://doi.org/10.1016/j.jbusres.2020.07.044
Lin, W. L., Yang, Y., Leow, N. X., Lim, W. M., Khee, P. C., & Yip, N. (2025). Trends in the dynamic evolution of blockchain and circular economy: A literature review and bibliometric analysis. Business Strategy and the Environment, 34(1), 1062–1084. https://doi.org/10.1002/bse.4027
Mugoni, E., Shumbanhete, B., & Nyagadza, B. (2025). The nexus between circular economy (CE) and sustainable supply chain management (SSCM): A systematic literature review and mapping of future research agenda. Circular Economy and Sustainability, 5(6), 5027–5064. https://doi.org/10.1007/s43615-025-00663-8
Quayson, M., Bai, C., Sun, L., & Sarkis, J. (2023). Building blockchain-driven dynamic capabilities for developing circular supply chain: Rethinking the role of sensing, seizing, and reconfiguring. Business Strategy and the Environment, 32(7), 4821–4840. https://doi.org/10.1002/bse.3395
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261
Schmidt, J. L., Sehnem, S., & Spuldaro, J. D. (2024). Blockchain and the transition to the circular economy: A literature review. Corporate Social Responsibility and Environmental Management, 31(3), 2010–2032. https://doi.org/10.1002/csr.2674
Souza, E. B., Carlos, R. L., de Mattos, C. A., & Scur, G. (2024). The role of blockchain platform in enabling circular economy practices. Corporate Social Responsibility and Environmental Management, 31(6), 5730–5743. https://doi.org/10.1002/csr.2885
Sun, L., Bai, C., & Sarkis, J. (2025). How do circular economy and blockchain technology adoption relate to firm financial performance? International Journal of Production Economics, 285, 109655. https://doi.org/10.1016/j.ijpe.2025.109655
Shrivastav, S. K., & Bag, S. (2024). Blockchain technology in circular economy: Unpacking the potential issues and critical echoes through data triangulation and natural language processing. Business Strategy and the Environment, 33(6), 5463–5484. https://doi.org/10.1002/bse.3763
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222. https://doi.org/10.1111/1467-8551.00375
Upadhyay, A., Mukhuty, S., Kumar, V., & Kazancoglu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production, 293, 126130. https://doi.org/10.1016/j.jclepro.2021.126130
Vazquez Melendez, E. I., Bergey, P., & Smith, B. (2024). Blockchain technology for supply chain provenance: Increasing supply chain efficiency and consumer trust. Supply Chain Management: An International Journal, 29(4), 706–730. https://doi.org/10.1108/SCM-08-2023-0383
Vu, N., Ghadge, A., & Bourlakis, M. (2025). The impact of blockchain adoption on supply chain performance: Evidence from food industry. International Journal of Production Research, 63(14), 5402–5427. https://doi.org/10.1080/00207543.2024.2414375
Wang, Y., Han, J. H., & Beynon-Davies, P. (2019). Understanding blockchain technology for future supply chains: A systematic literature review and research agenda. Supply Chain Management: An International Journal, 24(1), 62–84. https://doi.org/10.1108/SCM-03-2018-0148